Log In / Register | May 22, 2012

1031 Exchange Tax Requirements

Section 1031 is a useful section of the tax code that allows a taxpayer to defer taxable gains on a property by using it as an exchange rather than a simple sale.

Temporary Payroll Tax Cut Cuts Bonus Depreciation, Impacts LKEs

When H.R. 3765, the Temporary Payroll Tax Cut Continuation Act of 2011 was signed by President Obama on December 23rd, 100 percent bonus depreciation or the ability to quickly write off equipment purchases ended. Congress was not able to offset the expense with equivalent revenue generators.

Construction Exchange

A 1031 construction exchangeenables the taxpayer to defer federal and state capital gains and recapture depreciation taxes on the sale of existing property, and construct improvements to a replacement property.

Three Things Impacting a Decline in 1031 Exchange Activity

A review of 1031 exchange activity reflects $73.6 billion dollars deferred in 2005 decreasing to $2.5 billion estimated by the Joint Committee on Taxation in 2011.

Hotel Upgrade with a 1031 Improvement

Hotel owners can adjust their portfolios by replacing underperforming assets through the use of a 1031 improvement exchange-strategy.

Defer a Franchise's Capital Gains Tax

A Subway franchisee selling his location recently asked me if a 1031 exchange allowing the owner to defer the capital gain and recaptured depreciation tax could apply to his sale.

Deferred Sales Trust, A 1031 Alternative

A Deferred Sales Trust (DST) is a tax deferral and asset diversification strategy that can be a compelling alternative to a 1031 Exchange for appropriate clientèle owning highly appreciated real and personal property, and businesses.

Taxes: Conversion Franchise and 1031 Exchange

1031 tax deferred exchanges and franchises have more in common than may you think. Generating cash flow is king while saving tax dollars is a close second. Over the past couple of years, I have accommodated exchanges for owners of franchises.